The dYdX protocol has announced its very first token buyback program for its native token, DYDX. Behind this operation lies a clear intention to strengthen the alignment between protocol growth, network security, and long-term token value.
25% of Net Revenues Reallocated Monthly
Starting from March 24, 2025, 25% of the net fees generated by the dYdX protocol will be used to repurchase DYDX tokens from the market. These tokens will then be staked to support network security. This decision, approved by the governance, marks a turning point in capital management within the protocol.
This initiative has a dual objective: gradually reducing the circulating supply and demonstrating community trust in the longevity of the ecosystem. Current discussions within the community forum even consider a potential increase in this allocation to 100% of net revenues, which would significantly transform the economic dynamics surrounding the token.
A Key Moment for the Protocol
This buyback comes at a time when dYdX is going through a major phase of evolution. With over $270 billion in traded volume in 2024 and a cumulative total of $1.49 trillion since 2021, the platform has established itself as one of the most active DEXs in the industry.
The launch of dYdX Unlimited in November 2024, the complete overhaul of the iOS application in February 2025, and the upcoming introduction of features such as Spot Trading, Multi-Asset Margining, and support for EVM through IBC Eureka further strengthen this innovation drive.
A Political and Economic Signal
The token buyback program also takes place in a particular context: as the emission halving set for June 2025 approaches and 85% of the total token supply has already been unlocked, inflationary pressure on DYDX is gradually decreasing.
In addition, the migration to the dYdX Chain, which started in 2023, is entering its final phase. Nearly 86% of the tokens have already been bridged to the new blockchain, and the community is preparing to permanently deactivate the inter-chain bridge in June 2025. This decision could render the remaining tokens on Ethereum (ethDYDX) permanently inaccessible, thus reducing the supply available on the new network.
Proactive Governance Serving Long-term Vision
This buyback program fully embodies the communal philosophy of dYdX. Voted on and implemented by the governance, this initiative reflects a shared desire to firmly anchor the DYDX token at the heart of the protocol’s economic model.
By structuring regular revenue redistribution to token holders, the community seeks to create a virtuous circle between protocol usage, network security, and asset valuation. This long-term approach reflects an increasing maturity in ecosystem management.
While the program’s overall impact will be observed over time, it already serves as a strong signal: that of a united community capable of making impactful decisions and responsibly evolving the tokenomics in support of sustainable growth.
